OTCPK:PGMFF - Post by User
Comment by
lumpy13on May 14, 2020 3:01pm
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Post# 31029126
RE:Not good
RE:Not goodPeople spend too much time looking at technicals and not on the company itself. PGM is fully funded through start-up, with around C$25m excess cash on top of that.
It will receive another C$12m from the exercise of 85 cent warrants by the end of the month. What's surprising is that even with the warrant overhang the stock has moved up nicely in recent weeks.
PGM will be producing by yearend. With their excess cash, it would behoove them to repurchase their royalty (5% of AU production until 50k oz and 2.5% thereafter). This royalty provided $25m funding but can be repurchased for $35m through 2021. This would further enhance the company's returns.
PGM is a nice, lower risk play in AU.